A firm plans to issue $20m of stock. It can issue $10m of debt before it needs to issue debt at a higher rate. The firm

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answerhappygod
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A firm plans to issue $20m of stock. It can issue $10m of debt before it needs to issue debt at a higher rate. The firm

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A firm plans to issue $20m of stock. It can issue $10m of debtbefore it needs to issue debt at a higher rate. The firm has nopreferred stock and $7m of retained earnings which it can use forfinancing. If the firm's weights are 50% stock and 50% debt, whichbreakpoint will come first?
Group of answer choices
debt
equity
both occur at the same time
can't tell from the information given
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